Is the franchise fee refundable under the Multi-Unit Development Agreement for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
-Unit Development
If you and we agree that you will develop three or more franchises, then you will sign our Multi-Unit Development Agreement ("MUDA") in the form of Exhibit C to this disclosure document. Your franchise fees will be reduced to $30,000 for the second outlet, $25,000 for the third outlet, and $20,000 for the fourth and each additional outlet. You will pay 50% of these franchise fees upon signing the MUDA, and the balance for each franchise when you sign a letter of intent to lease each additional location. You must sign a separate Franchise Agreement for the additional location at that time. These fees a
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the franchise fees paid under the Multi-Unit Development Agreement (MUDA) are not refundable. If a franchisee and Better Blend agree to develop three or more franchises, they will sign a MUDA. The franchise fees are reduced to $30,000 for the second outlet, $25,000 for the third outlet, and $20,000 for the fourth and each additional outlet.
The payment structure for these reduced fees involves paying 50% upon signing the MUDA and the remaining balance when a letter of intent to lease each additional location is signed. A separate Franchise Agreement must also be signed for each additional location at that time.
The non-refundable nature of these fees means that if a multi-unit developer decides not to proceed with opening all the agreed-upon locations, the initial payments made towards those locations will not be returned. This is a standard practice in franchising, as the franchisor incurs costs in preparing to support the new locations. Prospective Better Blend franchisees should carefully consider their ability to develop the agreed-upon number of units before entering into a MUDA.